Russia’s Novak: Important to regain global oil market share once demand recovers

Dhwani Mehta FXStreet

“It is extremely important for Russia and other oil producers to return quickly or even raise their market share once oil demand recovers,” said the Russian Energy Minister Alexander Novak in a statement on Tuesday.

Key quotes

“Domestic oil services market could halve in 2020-2021 from 2019.”

“Foreign oil servicing companies may take up more than 50% of the domestic market by 2022 without measures to help the industry.”

“Russia to offer 3-year tax breaks from Jan. 1, 2022 for oil companies taking part in the "unfinished wells" programme.”

“Russia plans to drill around 2,700 unfinished wells in 2020-2022, launch them once opec+ output cuts deal ends.”

“Expects additional budget revenues of 1.15 trln rbls from unfinished wells programme.”

“Sees investments of 300-400 bln rbls by oil producers as part of unfinished wells programme.”

“Drilling of unfinished wells for natural gas production is under discussion.”

“There are proposals to engage some oil servicing companies in "green" energy projects.”

“Oil servicing sector's recovery may take around 2 to 5 years, based on expert estimates.”

WTI slumps over 3.50% to fresh three-month lows sub-$38.50

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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